Stillfront Group (SF) Q3 2026 earnings summary

Executive summary

• Net revenue was SEK 1,291m, with organic growth of -1.5%; key franchises grew 8.5% for a fifth consecutive quarter, offset by declines in Other Games.

• Adjusted EBITDAC was SEK 366m, down 16% YoY, at a 28% margin; net result rose to SEK 95m from SEK 55m.

• Q3 free cash flow was SEK 256m; net debt including cash earnouts due within 12 months was SEK 4,223m.

• Seven key franchises contributed around three-quarters of revenue and reached 32.3m monthly active players.

Financial highlights

• Q3 bookings were SEK 1,287m versus SEK 1,369m; net revenue was SEK 1,291m versus SEK 1,373m.

• Adjusted EBITDAC fell 16% to SEK 366m; lower revenue, including divestments, and higher personnel costs were partly offset by lower user acquisition costs.

• Gross profit was SEK 1,070m and gross margin was 83%, unchanged YoY; adjusted EBITDA was SEK 485m versus SEK 552m.

• Operating cash flow rose to SEK 383m from SEK 310m after SEK 100m in tax payments; free cash flow was SEK 256m versus SEK 183m.

• 9M net revenue was SEK 3,947m versus SEK 4,354m; adjusted EBITDAC was SEK 1,064m versus SEK 1,213m, and net result was SEK 424m versus SEK 6m.

Outlook and guidance

• Strategy prioritizes investment in seven key franchises, scalable growth and long-term value; the strategic review remains open.

• User acquisition spending remains tied to return thresholds; Q4 spending may exceed Q3's 24% of revenue only if marketing conditions meet strict criteria.

• Final earnouts fall due in mid-2027; Jawaker's full cash flow is expected to accrue from 2027 and support debt reduction.

• ReelSaga remains in validation; further investment in the AI-assisted short-form drama app is contingent on results.